212587e6-d38e-4450-8aa1-f8964278d9c8.pdf
StratMin Global Resources Plc
('StratMin' or the 'Company')
Bass transaction update
StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces that it has further progressed the investment by ASX listed, Bass Metals Ltd ('Bass'), into the Company's subsidiary, Graphmada Mauritius, details of which were initially announced on 2 September 2015, with further updates on 1 October 2015, 21 October 2015 and 18 November 2015 (the 'Investment Agreement').
Amounts totalling £277,885 have been received by StratMin to date and Bass has committed to fully funding the first tranche of £500,000 by 31 December 2015 ('First Tranche'). Bass has further committed to fully funding the second tranche of £1,500,000 by 31 March 2016 ('Second Tranche'). Completion of the First Tranche delivers Bass a 6.25% interest in Graphmada Mauritius, with completion of the Second Tranche taking this interest to 25%.
The Investment Agreement also includes an option incentive for Bass to further increase its holding in Graphmada Mauritius (the 'Option Incentive'). Bass has requested an amendment to the terms of the Option Incentive such that Bass may acquire up to a further 15% of Graphmada Mauritius under the same option pricing mechanism as originally agreed on 2 September 2015. The exercise of the Option Incentive is subject to the completion of the Second Tranche by 31 March 2016 and must be exercised before 30 April 2016, or a mutually agreed alternative date. If exercised in part or in full, the Option Incentive will deliver additional funding to Stratmin.
The exercise price of the Option Incentive requires Bass to pay a premium to the implied share price of Stratmin set by reference to the 5 day volume weighted average price ('VWAP')of Stratmin's Ordinary Shares according to the following formula:
For 15% interest in Graphmada Mauritius = (x/4.03) multiplied by GBP1.23 million multiplied by 1.5 where x = the 5 day VWAP in pence per share.
This amendment to the Investment Agreement follows the settlement of a legal claim by Bass with Singapore-listed, LionGold Corp Group, that is providing Bass with A$2.5m, as detailed in the Company's announcement of 18 November 2015, which will be part used to finance the Investment Agreement in addition to other funding initiatives being investigated by Bass. The funds received from the completion of the First Tranche and Second Tranche, and the Option Incentive if exercised, will be used by Stratmin to progress the expansion of Graphmada's operations, further details of which will be provided shortly.
Brett Boynton, CEO, commented:
'We are very pleased to have a schedule for completion of our deal with Bass so we can finalise the CAPEX budget for the next phase of our expansion program. Their continued commitment to extending their position in the farm-in with an agreed premium to the implied share price in the Option Incentive component of the Investment Agreement is a great endorsement and shows their confidence in what we are building.'
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StratMin Global Resources Plc
Brett Boynton, CEO
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+44 (0) 20 3691 6160
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Strand Hanson (Nominated & Financial Adviser)
Rory Murphy / Ritchie Balmer
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+44 (0) 20 7409 3494
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Beaufort Securities (Broker)
Jon Bellis
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+44 (0) 20 7382 8300
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Blytheweigh (Financial PR)
Camilla Horsfall/ Megan Ray
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+44 (0) 20 7138 3204
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